Product Liability and Mass Torts

Predatory Lending and Unfair Practices

Predatory Lending and Unfair Practices

Triggered by the collapse of housing prices and a surge in defaults and delinquencies, a spate of recent cases include an array of allegations concerning potential predatory lending behavior. Complaints allege that the loan-generating process itself was fraudulent or that certain types of loans or loan characteristics were unsuitable for the borrower. Other suits allege discriminatory practices, claiming disparate treatment of groups based on race or other demographic characteristics.
 
In addressing these types of allegations, which involve claims for either injunctive relief or monetary damages, NERA experts perform rigorous statistical investigations of alleged practices. We use econometric analysis to understand the causes of differences in loan prices and terms, including the credit history, education, and income of the borrower, as well as the borrower’s preference for risk (or discount rate). Our experts also consider the competitiveness of the market in which the loan was arranged and other macroeconomic factors. Statistical analysis is essential to distinguish behavior that is predatory from that which is explainable by other factors and so does not provide evidence of fraud or discrimination.

NERA experts have extensive experience presenting the results of complex statistical analyses in a manner that can be easily understood by clients, judges, and juries.

Name Title Location Phone Email
Lucy P. Allen Managing Director New York City +1 212 345 5913 lucy.allen@nera.com
Dr. Denise Neumann Martin Managing Director New York City +1 212 345 5296 denise.martin@nera.com
Dr. Faten Sabry Managing Director
Bankruptcy Practice Chair
New York City
London
+1 212 345 3285
+44 20 7659 8618
faten.sabry@nera.com
Dr. Stephanie Plancich Associate Director New York City +1 212 345 7719 stephanie.plancich@nera.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 7659 8644
mark.berenblut.affiliate@nera.com
Title Type Author
Snapshot of Recent Trends in Asbestos Litigation: 2017 Update Report Mary Elizabeth C. Stern and Lucy P. Allen
Asbestos: Economic Assessment of Bans and Declining Production and Consumption Report By Lucy P. Allen, Mary Elizabeth C. Stern, Jorge Baez, and Frank George
Study of the Impact of Securitization on Consumers, Investors, Financial Institutions... Study By Dr. Faten Sabry and Dr. Chudozie Okongwu
The Use of Economic Analysis in Predatory Lending Cases: Application to Subprime Loan... Published Article By Dr. Denise Neumann Martin, Dr. Stephanie Plancich, and Dr. Faten Sabry
Subprime Securities Litigation: Key Players, Rising Stakes, and Emerging Trends Published Article By Dr. Faten Sabry, et al.